Australian Dollar: The Aussie opens around the US98 cent mark today after yet another volatile 24 hours. During yesterday''s domestic session the unit made some steady gains towards 0.9850 but was swiftly stopped in its tracks as geo-political tensions surfaced once again. The Aussie tumbled to a low of 0.9760 after comments from North Korea warning of more retaliatory attacks should any provocations emanate from the South. The Aussie headed into the European session around US98 cents ahead of sixty-point overnight range and a high of 0.9820. The Aussie remains particularly strong against the Euro at 0.7332.

We expect a range today of 0.9760 - 0.9835

New Zealand Dollar: The kiwi opens marginally weaker today against its US counterpart at 0.7595 having spent yesterday's domestic session oscillating about 50 points either side of 0.7600. The unit took a tumble late in the local session after comments from North Korea warning of more retaliatory attacks should any provocations emanate from the South. The kiwi headed into the European session trading around the 0.7620 area ahead of a 50-point overnight range and a low of 0.7580. Meanwhile, the kiwi is largely unchanged against the Australian Dollar and opens today at 0.7750.

We expect a range today of 0.7560 - 0.7620

Great British Pound: Pound Sterling opens steady against the greenback (1.5754) and weaker against the Euro (0.8475) as it continues to take its cue from events and updates regarding Euro zone debt concerns and whether it can be contained. Markets were soothed somewhat overnight after European Central Bank council member Axel Weber said the rescue fund could be increased. Meanwhile, UK retail sales rose in November helping to keep a floor under the pound around the 1.5700 area. Sterling opens largely unchanged against both the Australian Dollar (1.6060) and the New Zealand Dollar (2.0710).

We expect a range today of 1.6040 - 1.6100

Majors: The Euro slipped towards a two-month low of 1.3285 during overnight trade as bond prices in Spain and Portugal declined on fears the debt crisis may deteriorate. However, financial markets were calmed after comments from European Central Bank governing council member Axel Weber who said the rescue fund could be increased, helping to push the 16-nation currency to an overnight high of 1.3387. Also aiding the Euro was a report showing German business confidence rose to a record high in November with the index coming in at 109.3 from 107.7 in October. Markets were closed in the United States for Thanksgiving Day and the greenback opens little-changed against the Japanese Yen at 83.56.

Data releases

AUD: No data today

NZD: No data today

JPY: CPI, Oct

GBP: No data today

EUR: German CPI, Nov

USD: No data today

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